Investors pile into real estate after evidence of a pick-up in Germany

Low borrowing costs and the prospect of an improving economic backdrop are helping to push up the German commercial property market. Long-term interest rates in Germany have fallen by 1% to about 4.5% in the past 12 months. Milan Khatri, head of economics at the Royal Institute of Chartered Surveyors (RICS), believes this is the key reason why investors are beginning to pile money into the sector. There is evidence that economic conditions are also improving in the country. GDP is expected to rise 1.4% this year, according to the Munich-based Ifo Economic Research Indicator, with i...